The digital economy is the market for your business’s future growth. But while research shows 90% of CEOs understand that digital will have a major impact on their industry, it also reveals most are slow to react: just 25% have a plan in place, and fewer than 15% are actively implementing that plan.
Meanwhile, the early adopters are running full steam ahead. Companies that have embraced the digital transformation and executed on a digital strategy are seeing real shareholder and stakeholder value.
To develop your own digital plan, start by understanding and addressing five technology trends that have converged into the digital economy and are revolutionizing the way we do business.
Hyperconnectivity offers the potential for massive value creation
Every person and every machine is now connected – hyperconnected – and that’s driving new channels to reach customers and new ways to use assets. With 3.1 billion people connected to the Internet and 1.3 billion linked to social networks, companies have an unprecedented opportunity to connect to customers in ways never thought possible. Businesses are also able to connect to suppliers across all service categories in real time, and can leverage communities that were previously inaccessible in order to enhance customer engagement and drive more personalized experiences. Combine these aspects of hyperconnectivity with cheaper, more reliable sensors, and you have the potential for massive value creation.
Businesses that run in the cloud grow faster
No, driving business in the cloud isn’t new; however, more apps are moving to the cloud because the value of doing so is proven. With faster time to value, higher rates of adoption, and the ability to connect value chains in real time, the cloud offers huge potential for today’s businesses. Successful organizations are already taking this seriously. Experts predict spending on cloud computing infrastructure and platforms will grow at a compound annual rate of 30% from 2013 through 2018, compared with just 5% growth for overall enterprise IT.
Smart technologies blur industry lines
And the cloud is only one example of today’s overall “smarter world,” the third trend that’s shaping the emerging digital economy. Smarter machines, smarter printing, and smarter products are rapidly reshaping value chains, industries, and, ultimately, the world. Companies can leverage Big Data and new technologies to change everything from product design to customer service. Industry lines have blurred, and companies must innovate or lose market share. In a connected world, every company is a tech company.
Cyber security is critical to business survival
Of course, with this increased reliance on networked infrastructure also comes opportunities for exploitation, leading us to the fourth digital trend, cyber security. In the past year, five out of six large companies were targeted by cyber criminals, a 40% rise from the previous year. And globally, cybercrime costs businesses $375-$575 billion annually, and a net loss of up to 200,000 jobs in the United States alone. Cyber security has never been more important. As the risk of corporate spying and identity theft rises, businesses must secure their data, interactions, and identities, and be sure to partner with suppliers that meet the highest security standards.
Super computing reduces costs, simplifies business processes
At the core of the digital economy is large-scale in-memory computing. Previously, business applications were limited by having separate landscapes for separate functions, which resulted in batch jobs, data redundancy, and high costs to run. But so-called “super computing,” a technological breakthrough that allows for the collapse of transactional and analytical processing into a single platform, has the ability to reduce costs and simplify business processes.
A digital core expands what’s possible
Imagine reducing the duration of a London to New York City flight from 8.25 hours to 8.42 seconds! It’s a feat that would absolutely revolutionize travel and change the world as we know it, and it’s similar to what in-memory solutions, like the SAP HANA platform, can do for your business. Organizations can manage all aspects of business on one platform, allowing for seven times faster throughput with a data footprint that is 10 times smaller, as well as 1,800 times faster analytics and reporting, and a 65% reduction in resource consumption.
The time is now to think like a tech company to simplify your business processes so you can focus on forging a bold vision for a new kind of business.